Stanbic Bank Tanzania became the first bank in the country to offer a direct settlement service in yuan (renminbi) for commercial transactions with China. This solution allows companies to settle their Chinese suppliers without going through the US dollar.

Launched on August 12, this new service allows Tanzanian companies to convert their shillings directly into yuan in order to make or receive payments related to their trade with China.

So far, transactions generally required a double conversion, from shilling to the US dollar and then from the dollar to the yuan, generating additional costs and exposure to several exchange rates.

By eliminating the use of the dollar as an intermediate currency, Stanbic Bank intends to reduce transaction costs, simplify international payments and improve their predictability.

However, the bank states that companies will remain exposed to fluctuations between Tanzanian shilling and yuan. To manage this risk, it will make cash, futures and exchange options available.

This initiative builds on the infrastructure of Stanbic Bank Tanzania's Standard Bank Group, in partnership with the Industrial and Commercial Bank of China (ICBC) and China's Cross-Border Interbank Payment System (CIPS).

The Tanzanian authorities believe that this mechanism should facilitate trade and strengthen economic relations between the two countries.

China is Tanzania's largest trading partner. According to the data presented at the launch, bilateral trade accounts for nearly $9 billion per year.

In 2025, Tanzanian imports from China reached $8.17 billion, while exports to the Chinese market amounted to approximately $710 million, illustrating the importance of this trade corridor for Tanzanian companies.